About Pick of the Day

Every day, I will try to find what I believe is the best looking short term currency trade setup for the upcoming trading day or week. If you're a forex newbie, it can be tricky trying to figure out how to look at charts and draw lines. My goal is help you understand the psychology behind price movements in the foreign exchange markets, so you can learn to analyze your own currency charts and trade on your very own. I will post my ideas and/or reviews through out each session right here, on Twitter and on Facebook.

Pick of the Day: EUR/USD – Close Open Orders

EUR/USD fall as hoped on the backs of weak Eurozone retail sales data and a upside surprise in the ADP Nonfarm payroll report. Unfortunately, our orders were not triggered before the move.

No trade triggered. Close Open orders

We are fast approaching this month’s US Jobs data and the Fed rate decision. With the surprise in ADP, we may possibly see strong US Jobs data this Friday. This could be the determining factor as to how much the FOMC will cut rates, if they do.

Until then, stay tuned for new trade ideas!

Trade Idea: 2007-12-04 23:20

Greetings Everyone! Tonight we will take a look at EUR/USD as it appears the pair has run out of buyers at a minor resistance level. Will it return to the downtrend?

As we can see on the 4hr chart, the pair is in a short term downtrend and it looks like the correction rally is running out of steam. Stochastics are showing the pair is overbought as well.

We have a few main news events coming withing the next couple of weeks like the US Jobs report, so we may see support and resistance trading play out for now.

The big event for tomorrow is the ADP Nonfarm Payroll data. This report may give us a pretty good clue to the government data set to be released on Friday.

So, we will short this pair if it moves up a bit more further. Here we go:

Short EUR/USD at 1.4780, stop at 1.4820, pt1 at 1.4740, pt2 at 1.4640

Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.

Stay tuned for updates and trade adjustments. Good luck and good trading!

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